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Bitcoin holdings plummeted by 31%—this signal should not be underestimated. Historically, whenever such a significant decrease in open interest occurs, it often indicates that the market has reached a critical bottom zone.
What does this round of massive leverage liquidation mean? On one hand, short-term panic and rapid clearing are releasing risks; on the other hand, this precisely lays a more solid foundation for subsequent rebounds. When excessive leverage is cleared, the market has the opportunity for re-pricing.
This adjustment of BTC may be completing an important bottom-building process. Once holdings stabilize and begin to slowly rebound, it is usually accompanied by healthier and stronger upward trends. The market may be accumulating strength for the next bull run.